Life Insurance Corporation of India (LIC) is planning to raise $6-7 billion by selling its plots and commercial buildings, according to a report by Livemint.
The insurance giant has assembled an internal team to devise a sale plan for its real estate assets across the country, starting with Mumbai, sources cited in the report said.
This asset monetisation plan comes as the state-run insurer faces increasing competition from the private sector, impacting its market share.
Some of LIC’s premium assets include the Jeevan Bharti building in Delhi’s Connaught Place, the LIC building on Chittaranjan Avenue in Kolkata, and buildings housing the Asiatic Society and Akbarally’s in Mumbai.
An LIC executive mentioned that the actual value of these assets might be five times their current valuation.
Despite growing competition, LIC has maintained a strong presence in the Indian insurance sector, holding a 58.8 percent market share in first premium income in FY24. The company is focusing on expanding into Tier-2, Tier-3, and rural areas to strengthen its position against private competitors.
For the March quarter of the financial year 2023-24, LIC reported a 2.5 percent year-on-year increase in net profit to Rs 13,762 crore, up from Rs 13,421 crore in the same period last year. The insurer’s asset quality also improved, and it announced an interim dividend of Rs 6 per share.
As of March 2024, LIC’s assets under management (AUM) increased to Rs 51.21 lakh crore, compared to Rs 43.97 lakh crore on March 31, 2023, marking a 16.48 percent year-on-year growth.
At 9:30 am, LIC stock was trading at Rs 1,072.75 on the National Stock Exchange, up 0.55 percent from the previous close.
